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We applied for ILR in December 2012 and has yet to receive our documents back yet.

My wife's company today wrote to her saying that they are going to dismiss her despite having given them our application letters couple of times. Our current visa expired back in December but should technically continue until application is decided so I am not sure why her company are making this fuss.

Anyone know if I can expedite my application in this situation? If so, does anyone know of the number I need to get in touch with? I believe my application is with Liverpool office.

Thanks.

Your wife's employer should be told that they could face an unfair dismissal claim. Here's the info on how her employer can check her right to continue working:
http://www.ukba.homeoffice.gov.uk/busin ... /ecsstep2/

As the application has passed the 6 month mark she can approach her MP to chase up the UKBA on her behalf. This often moves things forward.

See also Right to work.